This week has spelled a double positive for consumers financial well-being with the 25 basis point reduction in the repo rate and the published figures for CPI for August slowing to 4.4%, according to short-term lender Wonga.
Yesterday, South African Reserve Bank (SARB) Governor Lesetja Kganyago announced a cut in the repurchase rate (repo rate) for the country. He said the central bank was cutting the repo rate by 25 basis points, meaning rates would come down by 0.25%.
James Williams, head of marketing at Wonga, said this meant that servicing debt repayments would become cheaper.
This is particularly true for those with high value loans such as home loans and vehicle asset finance. As an example, those who have bonds of R1 million can expect to see a reduction of around R200 on their monthly bond repayment. While this is great news, and with another potential repo rate cut on the horizon this side of the year, consumers still need to remain guarded around their finances and ensure they have a well-planned budget, Williams said.
Toni Anderson, head of Standard Bank Home Services, said a bond worth R1m would see a saving of R208 per month, or R2 500 per year, following this 25 basis point rate cut.
